✨ Scanpower Limited Accounting Policies
3308
NEW ZEALAND GAZETTE
No. 129
SCANPOWER LIMITED - LINES BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2001
SCANPOWER Limited ("SCANPOWER") is a public company registered under the Companies Act 1993. These financial statements have been prepared for the purposes of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 as amended by the Electricity(Information Disclosure) Amendment Regulations 2000. The financial statements comprise separate Statements of Financial Position, Financial Performance, Cash Flows and Movements in Equity for the Line and Other Businesses as required by the Regulations. These businesses operate in and around the Southern Hawkes Bay area. The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed by the Company, with the exception that certain fixed assets have been revalued.
Methodology and Separation of Businesses
SCANPOWER has generally followed the guidelines in the Electricity Information Disclosure Handbook issued by the Energy Markets Policy Group of the Ministry of Economic Development.
The financial statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified.
Goods and Services Tax (GST)
The statement of financial performance and statement of cash flows have been prepared so that all components are stated exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables which include GST invoiced.
Operating Revenue
Sales revenue represents revenue earned for the sale of the company’s products and services net of returns, trade allowances and taxes paid. Other revenue includes interest income on investments and dividends received.
Income Tax
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
Receivables
Receivables are carried at anticipated realisable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at year end. Bad debts are written off during the year in which they are identified.
Inventories
Inventories are valued at the lower of weighted average cost and net realisable value.
Employee Entitlements
Provision is made in respect of the Company’s liability for annual, long-service and retirement gratuities. Annual leave has been calculated on an actual entitlement basis at current rates of pay, whilst the other provisions have been calculated on an actuarial basis at current rates of pay.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 129
Gazette.govt.nz —
NZ Gazette 2001, No 129
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Scanpower Limited Accounting Policies for Lines Business
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